Turkish PM Raps IMF Loan Delay

Published July 7th, 2001 - 03:00 GMT

Turkish Prime Minister Bulent Ecevit on Friday called IMF delays to the release of key crisis loans a very large injustice, helping to send the countr

Turkish Prime Minister Bulent Ecevit on Friday called IMF delays to the release of key crisis loans a very large injustice, helping to send the country’s currency to record lows and leaving stocks down by nine percent, reported the Gulf Daily News.

Ecevit was speaking after Economy Minister Kemal Dervis held talks in Washington with IMF officials. Dervis said earlier he hoped a compromise could be reached within a week.

“To me, delaying the aid is a very big injustice,” Ecevit told reporters.

“I am hopeful Dervis will eliminate this injustice.

The IMF earlier announced it had delayed a meeting to approve a $1.562 billion loan tranche to Turkey, saying measures to reform its banking system and prepare landline monopoly Turk Telekom had not gone far enough.

Turkish President Ahmet Necdet Sezer on Friday delayed the passage of another key pledge to the IMF, a law to liberalize the country’s tobacco sector.

The delay in the law's passage may further complicate relations with fund IMF inspector Juha Kahkonen, who said the law was crucial to Turkey’s program with the fund.

But the IMF did not say that ratification of the tobacco law was a condition for the release of the latest tranche, according to the paper.

Sezer vetoed the law, saying it did not offer protection to tobacco producers and compromised constitutional principles – Albawaba.com